STOCK MARKETS — Diamond issues stable in spite of market

A weak upward bounce by several diamond issues was not enough to overcome the general malaise on western markets. The Vancouver Stock Exchange resource index slipped more than 23 points to finish at 1,286.05 while the composite index closed down 13.74 points at the 967 level for the week ended July 27.

Diamond issues managed to remain stable, if not stage weak rebounds, in the wake of a sell-off caused by a widely circulated sell recommendation from newsletter-writer Paul Sarnoff.

Members of the DHK syndicate all gained ground, with Kettle River Resources up $1.25 at $11.38, Dentonia Resources up $1.13 at $6.25 and Alberta-listed Horseshoe Gold Mining up $1 at $6.50.

Other issues which Sarnoff recommended be “sold at once” included: Almaden Resources, which gained 20 cents to finish at $2.75; Calco Resources, up 13 cents at 76 cents; Commonwealth Gold, which bounced 19 cents to $1.11; Williams Creek Resources, up 25 cents at $1.95; and Winspear Resources, up 25 cents at $2.50.

Some issues were not so successful in reversing negative sentiment, particularly those in the Saskatchewan diamond play where discoveries to date have not yet approached a potentially economic threshold.

Consolidated Pine Channel took a pummelling, closing down $2.70 at $3.30. The company is exploring for diamonds in Saskatchewan through a number of joint ventures, including one with Mountain Province Mining and another with Golden Peaks Resources.

Both joint-venture partners took hits, with Mountain Province down 28 cents at 77 cents and Golden Peaks down 71 cents at $1.64.

The edgy diamond exploration market prompted Diamond Field Resources to cancel a previously announced private placement of 1.3 million units at $5.50 each.

Diamond Fields had planned to use the funds to further explore various diamond properties including sea diamond concessions off the coast of Namibia. The issue dropped $1.23 to finish at $4.45.

Continental Pacific, which holds about 200 square miles of ground in the Coronation Gulf region of the Northwest Territories, dropped 80 cents to finish at $2.20.

Metall Mining is earning a 60% interest in two of the company’s properties and plans to begin drilling shortly to test polymetallic targets. Plans to acquire two groups of diamond-prospective claims in southern Wyoming appeared to help United Compass Resources, which posted a 58 cents gain to $1.65.

Crystallex International announced it had finished upgrading its plant at the Albino concession in Venezuela. The company expects the mill to produce about 64 oz. of gold per day and an operating profit of about US$500,000 per month. The partners have also started engineering studies to build a 400-tonne-per-day mill which, if all goes as planned, could begin operating in early 1994.

Crystallex closed up 75 cents at $7.63 while Eurus Resource, which is earning a 50% interest in the property, lost 6 cents to close at 90 cents. Murray Pezim’s Prime Equities International took a beating, closing down $1.75.

Investors in Coral Gold are awaiting assay results from drilling on the Robertson property in Nevada.

Amax Gold is earning a 60% interest in the property and Coral reports that 18 holes on the Porphyry zone returned at least 100 ft. of “good-grade” mineralization at a depth of fewer than 400 ft.

Coral slipped 6 cents to close at $1.12.

Rio Algom has a large block of St. Philips Resources for sale. The major, which plans to focus on opportunities in South America, owns about 2.6 million shares of St. Philips and one million shares of El Condor Resources. St. Philips and 60% joint-venture partner El Condor are looking for a buyer for their South Kemess property.